Banks to decrease time you can switch accounts

26 November 2014

bank_sign You should be able to switch your current account within five days rather than seven.

According to reports, chancellor George Osborne is looking at announcing a change in next week's Autumn Statement.

The original time limit of 30 days was reduced to a week last year.

The Treasury are expected to also extend its ‘switching guarantee’ to small businesses with a turnover of up to £6.5million. The guarantee is currently restricted to firms taking less than £2million.

This reduction in the time limit will encourage competition between banks and building societies, wherein they're expected to increase interest rates to attract new customers and switchers.

Rates on instant-access current accounts have been at a record low since July, and show no signs of improving. The average is now just 0.42%, below the Bank of England’s base rate of 0.5%.

So get switching if you've been complaining about your bank since forever.

TOPICS:   Banking

What do you think?

Connect with Facebook, Twitter, or just enter your email to sign in and comment.

Your comment